This paper presents an empirical analysis of stock exchange delisting in India. Volume and wealth effects of such a delisting are investigated using data of 41 stocks voluntarily delisted from NSE, BSE and CSE. There is an increase in trading volume and decline in the firm's value after the announcement. The paper further shows that delisting from NSE\BSE leads to a decline in shareholders' wealth by 12.01% over the entire event window. Delisting from CSE does not elicit such a decline in value and the overall effect on firm value after CSE delisting is insignificant.

1. Ajinkya, B. & Jain, P. (1989). “The Behavior of Daily Stock Market Trading Volume.” Journal of Accounting and Economics, Volume 11, pp. 331- 359.
2. Bombay Stock Exchange, Delisted Companies, accessed on 1 September, 2011 <a href=http://www.bseindia.com/about/datal/delist/a-delist.asp target="_blank">http://www.bseindia.com/about/datal/delist/a-delist.asp</a>
3. Brown, S. & Warner, J. (1985). “Using Daily Stock Returns The Case of Event Studies.” Journal of Financial Economics, Volume 14, pp. 3- 31.
4. Calcutta Stock Exchange, Notices, accessed on June 30, 2011, <a href=http://www.cse-india.com/new_web/csenotice.php target="_blank">http://www.cse-india.com/new_web/csenotice.php</a>
5. Chandy, P., Sarkar, S. and Tripathy, N. (2004). “Empirical Evidence On The Effects Of Delistings From The National Market System.” Journal of Economics and Finance, Volume 28, Number 1, pp. 46- 55.
6. Cowan, Arnold R., Carter, Richard B., Dark, Frederick H., and Singh, Ajai K., (1992). “Explaining The NYSE Listing Choices of NASDAQ Firms.” Financial Management, Volume 21, pp. 73- 86.
7. Clyde Paul, Schultz Paul, Zaman Mir,(1997). “Trading Costs and Exchange Delisting: The Case of Firms that Voluntarily Move from the American Stock Exchange to the Nasdaq.” Journal of Finance, Vol. 52, No. 5 , pp. 2103- 2112.
8. Das, S., Saudagaran, S. & Sinha, R. (2004). “ An Empirical Examination of NYSE Stocks Voluntarily De-listing from the Tokyo Stock Exchange.” Review of Accounting & Finance, Volume 4 , No. 3, pp. 47- 72.
9. Grammatikos, Theoharry, and George Papaioannou, (1986). “Market Reaction To The NYSE Listings: Tests Of The Marketability Gains Hypothesis.” Journal of Financial Research, Volume 9, pp. 215- 227.
10. Goetzmann, W., and Garry, M. (1986). “Does Delisting From The S&P 500 Affect Stock Price?” Financial Analysts Journal, Volume 42, pp. 64 - 69.
11. Liu, Shinhua, and John Stowe, (2005). “The Shareholder Wealth Effects Of Voluntary Foreign Delistings: An Empirical Analysis.” Applied Financial Economics Letters, Volume 1, pp. 199 - 204.
12. Marosi, Andras and Nadia Massoud, (2007). “Why Do Firms Go Dark?” Journal of Financial and Quantitative Analysis, Volume 42, pp. 421 - 442.
13. McConnell, J. J., H. J. Dybevik, D. Haushalter, and E. Lie, (1996). "A Survey Of Evidence On Domestic And International Stock Exchange Listings With Implications For Markets And Managers.” Pacific- Basin Finance Journal, Volume 4, pp. 347- 376.
14. National Stock Exchange, Corporate, viewed on May 03, 2011,<a href=http://www.nseindia.com/corporates/corporateHome.html target="_blank">http://www.nseindia.com/corporates/corporateHome.html</a>.
15. Sanger, Gary C., and John J. McConnell, (1986). “Stock Exchange Listings, Firm Value, And Security Market Efficiency: The Impact Of Nasdaq.” Journal of Financial and Quantitative Analysis, Volume 21, pp. 1-25.
16. Sanger, G. & Peterson, J. (1990). “An Empirical Analysis of Common Stock Delistings.” Journal of Financial and Quantitative Analysis, Volume 25, pp. 261 - 272.
17. SEBI Annual Report 2010-2011, accessed on 4 September 2011, <a href=http://www.sebi.gov.in/sebiweb/home/list/4/24/0/0/Annual-Reports target="_blank">http://www.sebi.gov.in/sebiweb/home/list/4/24/0/0/Annual-Reports</a>. pp. 36 - 51.